Dip, The

Title: The Dip
Author(s): Seth Godin
Publisher: Portfolio Hardcover
Pages: 80
Date: May 10, 2007

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Keep out the other guys

Godin gives several examples on why successful people view obstacles as something put in place to 'keep out the other guy'. If the obstacle were not there, then everyone would be able to provide the product or service. Obstacles allow monopoly pricing: a paycheck that is higher than the minimum wage. This concept is illustrated with medical specialists (when you're hurtin' you only want the best) and with restaurants (when you're visiting a new town for the first, and perhaps only, time, you want to visit its best restaurants). Individuals who view obstacles in this way go much further than the competition, and can demand much higher prices.